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European Shares Seen Lower After Cohn's Resignation


European stocks look set to open lower on Wednesday after White House economic adviser Gary Cohn announced his resignation over more aggressive trade policies, raising fears that U.S. President Donald Trump may risk a trade war.

U.S. stock futures fell more than 1 percent and Asian stocks retreated as U.S. President Donald Trump showed no signs of backing down despite resistance from some senior figures in his own Republican Party.

Investors ignored easing geopolitical tensions after the two Koreas agreed to hold their first summit in a decade late next month.

Oil prices fell while safe-haven assets such as gold and the yen strengthened as trade ware fears weighed on the dollar.

Quarterly national accounts figures from euro area are due later in the day, headlining a light day for the European economic news.

Across the Atlantic, trading today may be impacted by reaction to reports on private sector employment, international trade and labor productivity.

The Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, which may shed light on the outlook for interest rates.

Overnight, U.S. stocks finished modestly higher as geopolitical tensions eased and President Trump's trade rhetoric faced opposition from key Republicans such as House Speaker Paul Ryan.

The Dow closed marginally higher, while the S&P 500 rose 0.3 percent and the tech-heavy Nasdaq Composite advanced 0.6 percent.

European markets also ended Tuesday's session on a firmer note as concerns over a potential trade war and the political uncertainty in Italy began to ease.

The pan-European Stoxx Europe 600 index inched up 0.1 percent. The German DAX rose 0.2 percent, France's CAC 40 index gained 0.1 percent and the U.K.'s FTSE 100 added 0.4 percent.

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